Investment trusts experienced a “whirlwind half-year” of mergers, acquisitions and liquidations in the first six months of 2025 as boards responded to double-digit discounts, data from the Association of Investment Companies (AIC) has shown.

The association revealed there were two mergers, four acquisitions, and 11 liquidations of investment trusts in H1 2025.

Two mergers were completed (Invesco Asia Trust/Asia Dragon Trust and JPMorgan Global Growth & Income/Henderson International Income), while an additional two were proposed.

The two proposed mergers, which are expected to complete before the end of the year if approved, were between the European Smaller Companies Trust and European Assets Trust, and between Fidelity European Trust and Henderson European Trust.

In the first half of 2025, share buybacks reached £4.77bn, a 32 per cent increase on the fist six months of 2024.

The activity has narrowed the gap between trusts’ share prices and the value of their assets, with the average industry discount ending H1 2025 at 13.9 per cent, compared to 15.3 per cent at the end of 2024.

There was one IPO in the first half of 2025 – Achilles Investment Company, which raised £54m.

Secondary fundraising by existing trusts totalled £221m in H1, with more than a third being raised by the Debt – Loans and Bonds sector (£85m).

“It has been a whirlwind half-year, even exceeding the busy first half of 2024,” said AIC chief executive, Richard Stone.

“There have been 17 mergers, acquisitions and liquidations, versus nine in the same period last year, and share buybacks are nearly a third higher.

“Boards have been engaging with shareholders and considering all options to maximise value – we have seen 19 fee changes to benefit shareholders in the past six months.”

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